One of the greatest skills you can teach your child is how to manage money and get a value for a dollar. One day, your children will grow up to become adults; frugal money management can determine whether they make it on their own in this world. Or not.
At one time, certainly not during the Depression but until recently, thrift was a dirty word. Shopping at discount stores was for the lesser class, as was watching one’s pennies, eating leftovers and making do with less. A sign of wealth, of success, was new cars in the driveway, multiple credit cards (most likely maxed out), tri-weekly restaurant expeditions and the continual acquisition of the latest, greatest gadgets the glittering world of electronics and communications had to offer.
The problem with this lies in the by-product of excess: spoiled kids. Children can easily go from thrifty living to a better way of living; not so the other way around. Try taking anything from your kids that they have grown accustomed to: the PS, their cell phone, a TV in their room, their IPod. One could easily become alarmed at their reaction. Now give a child who is used to living on less some special treat, and you will witness one of the most enjoyable and satisfying moments in childhood: surprise, delight, appreciation.
Children are amazingly resourceful when given the chance. Teaching children how to budget, shop for sales, sort and clip coupons–these are all good for their future resourcefulness. More importantly is teaching children the value of delayed gratification; the word "no" works exceedingly good in this regard. Instead of buying your child an item outright on a credit card, go back to the sensible practice of layaway. You child can contribute their own money each week, and experience the thrill of hard-earned ownership and the profound appreciation for waiting for something they wanted and (eventually) received; this will nurture patience and stalwart budgeting in your child. Rediscover, with your child, the joy and fulfillment of baking bread and cookies and making meals from scratch. Point out the enormous benefits of buying from thrift as opposed to retail, and reward them when they make good choices with their money. Teach them not to waste anything but to use everything they have, to donate what they no longer need, and to fore go on items they don’t really need until they have enough money to buy it.
Simple budgeting concepts that will help your children–soon your adult children–manage money, simplify life, and live happier on less. One day, they will thank you profoundly for it.
